Robinhood excludes some prediction markets over manipulation fears
US broker says it is ‘very focused on insider trading’ as it pushes into fast-growing sector
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Trend puts pressure on brokerages and investment banks
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High-frequency market makers are seeking new avenues for growth as competition rises
The uses and abuses of prediction markets
Insider bets, low liquidity and regulatory gaps complicate efforts to turn wagers into financial tools
The failures of prediction markets are predictable
They can send wrong signals when trading is illiquid or when herd behaviour takes hold
There is method in the market’s madness
But it relies on a host of rosy assumptions going in investors’ favour
We should make insider trading a thing of the past
Laws don’t work — transparency and technology are the answer